Trump’s Trade Tariffs Could Crush the Gaming Industry — Not Just Nintendo at Risk

The E3 Association warns that Trump’s latest tariffs will affect far more than just Nintendo. Announced the same day as the Switch 2 price, the tariffs were called “an unfortunate coincidence,” and a danger Americans are “not taking seriously.” If you think games are expensive now, just wait.

 

Gaming has grown into one of the most expensive entertainment hobbies in recent years. From the rising cost of AAA games to ever-pricier consoles and recurring subscription services, playing video games today requires a serious investment. And it might soon get even worse — thanks to new trade tariffs introduced by the U.S. government.

Just yesterday, Nintendo put U.S. pre-orders for the Switch 2 on hold after Donald Trump’s newly announced tariffs threatened to raise prices even further. ESA spokesperson Aubrey Quinn told IGN that while the timing — the same day Nintendo revealed the console’s price — was “just an unfortunate coincidence,” the situation is far more serious than most Americans realize.

 

Trump’s Trade War Might Hit Every Major Console

 

It’s not just the Switch 2 in trouble. Xbox and PlayStation are also expected to announce price hikes in the coming weeks. According to the ESA, the long-term impact could be severe. “We don’t want this week’s announcement from President Trump to be the final word, but these tariffs will likely have a significant and harmful effect on the gaming industry — and the hundreds of millions of Americans who enjoy it,” Quinn said.

Trump has repeatedly suggested that companies can avoid tariffs by moving production to the U.S. But analyst Daniel Ahmad says that would be totally unrealistic for Nintendo. “They would need to invest billions just to build a factory. It would take four to five years to complete. Rebuilding the entire supply chain and importing key components — many of which would still be tariffed — would be a logistical nightmare.”

“They’d also have to find and train a new workforce and pay 10 to 15 times what they currently pay workers in Vietnam,” Ahmad continued (via Gamespot). “And the kicker is that by the time all of that’s done, the U.S. will probably have a new president who reverses all the tariffs anyway.”

Source: 3djuegos

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